W1 CW: Traditional vs Command

A Traditional Economy is characterized by which of the following?

• Reliance on customs and traditions

• Centralized decision-making

• High level of industrialization

• Use of advanced technology

A Command Economy is:

• An economic system where the factors of production are regulated by the government rather than consumers and producers

• An economic system where price is determined by business owners

• An economic system with no government intervention.

• An economic system based on barter trade.

In which type of economy does the government have significant control over resources?

• Traditional

• Command

What are decisions in a Traditional Economic System based on?

• Technology and innovation

• Customs and beliefs

• Market demand

• Government policies

In a Traditional Economic System, the goals of the society are ________ and what’s best for the group.

• survival

• wealth accumulation

• technological advancement

• individual success

In a traditional economy, methods of production are the same as they have always been. (True/False)

• True

• False

In a traditional economy, distribution is based on ______.

• customs/traditions

• government policies

• market demand

• technological advancements

What is one disadvantage of a traditional economic system?

• Encourages innovation

• Resist change

• High productivity

• Flexible roles

In a traditional economic system, how is a decision made on what type of jobs people will do?

• Allowing people to choose jobs they are interested in or are skilled in.

• The government deciding what job a person should have.

• Whatever is needed in the labor market.

• People are assigned specific roles based on tradition and needs of the group..

In a Command Economic System, who decides what should be produced, what resources are used, how it should be produced, and who has access to goods?

• The government decides the answers to these questions.

• The individual businesses decide what should be produced based on demand.

• The consumers decide what should be produced through their purchasing choices.

• The production decisions are made by private companies.